MSME Updates - Classification changes, Impacts, Benefits and Cluster support
The Union cabinet further changes to the definition of micro, small and medium enterprises, a Rs 20,000-crore fund to provide equity support to stressed entities in the sector, and equity infusion of Rs 50,000 crore into MSMEs through a fund of funds.
As per the new definition, a company with up to Rs 50 crore investments and up to Rs 250 crore turnover is classified as a medium enterprise. This change has expanded the ambit of MSME. Now a lot of these new inclusions can take the advantages of the MSME support. The Government and PSU organization have also been emphasised to release payment of MSME due within 45 days. The Micro businesses can also make clusters and take the benefits. It is important for the MSME Segment to come forward and aks for the support which is widely available.
CA Ruchi Maheshwari
Radio Dwarka,
India’s First Online Community Radio,
3rd May 2020, Wednesday